NEDBANK GROUP LIMITED (Incorporated in the Republic of South Africa) Registration number: 1966/010630/06 JSE share code: NED NSX share code: NBK ISIN: ZAE000004875 ('Nedbank Group' or 'the group')

NEDBANK GROUP – FIRST QUARTER 2013 TRADING UPDATE

“Nedbank Group produced a solid performance in the first quarter of 2013, maintaining momentum in transactional NIR growth and expansion of the net interest margin. The adverse trend in the last quarter of 2012 of elevated consumer indebtedness and concerning unsecured lending market dynamics continued into 2013, leading to higher levels of retail impairments compared to the first quarter of 2012.

In line with one of our strategic focus areas of expansion into the rest of Africa, we have entered into an agreement, subject to the required regulatory approvals, to acquire an initial 36% share in Banco Unico with the stake increasing to a majority shareholding over time. Banco Unico is the sixth largest bank in Mozambique and strengthens Nedbank Group’s position in SADC and East Africa.

Although we are cautious in our outlook for the year, Nedbank Group remains on track to achieve its medium to long term earnings growth target in 2013.”

Mike Brown Chief Executive

OPERATIONAL PERFORMANCE

Net interest income grew 7,3% to R5 121m (Q1 2012: R4 774m) driven by growth in average interest-earning banking assets of 5,9%. The net interest margin (NIM) of 3,62% increased from the comparative period (Q1 2012: 3,55%) as well as from the

WorldReginfo - 776212d8-6817-48b1-97e0-d6befbbd76d7 full 2012 year (December 2012: 3,53%). Margin gains were underpinned by asset pricing and mix changes primarily in personal loans, offsetting negative endowment from the 50 basis point interest rate cut in July 2012.

The credit loss ratio increased to 1,22% (Q1 2012: 1,08%). This comprised a specific charge of 1,13% and portfolio provisioning of 0,09% (Q1 2012: specific: 0,96% and portfolio: 0,12%), reflecting seasonal factors and in personal loans the continuation of higher levels of defaults identified in the fourth quarter of 2012, the effect of more conservative provisioning policies adopted from the second quarter of 2012 and a one-off model overlay charge of R60m.

Non-interest revenue (NIR) increased by 8,1% to R4 385m (Q1 2012: R4 058m) with:  Continued strong growth in commission and fee income of 11,2%;  Insurance income growth of 10,1% partially reflecting the slowdown in personal loans as well as the base effect from the benign claims experience in H1 2012; and  Trading income declining 15,6% from a high base as a result of strong performance in fixed income trading (FICC) in H1 2012.

Total assets increased from December 2012 by 7,2% (annualised) to R695,1bn (December 2012: R683,0bn). Advances grew 10,4% (annualised) to R540,7bn (December 2012: R527,2bn) with the personal loans book at 31 March 2013 marginally below December 2012 levels. Deposits increased 9,0% (annualised) to R563,1bn (December 2012: R550,9bn). Assets under management increased strongly by 29,1% (annualised) to R161,3bn (December 2012: R150,5bn).

Organic earnings growth during the first quarter resulted in the common equity tier 1 ratio increasing to 12,2% at 31 March 2013 following the successful implementation of Basel III in SA on 1 January 2013.

Basel III Q1 2013 ratio Proforma Internal target FY 2012 ratio range Common equity Tier 12,2% 11,6% 10,5% to 12,5%

WorldReginfo - 776212d8-6817-48b1-97e0-d6befbbd76d7 1 ratio Tier 1 ratio 13,4% 13,1% 11,5% to 13,0% Total capital ratio 15,4% 15,1% 14,0% to 15,0% (Ratios include unappropriated profits and are before the 2012 final dividend paid in April 2013)

Further details will be available in the group's 31 March 2013 Pillar 3 Report to be released on 6 May 2013 and published on the group's website at www.nedbankgroup.co.za.

Nedbank Group remains well-funded with a strong liquidity position underpinned by further lengthening of the funding profile, a large surplus liquid asset buffer, a strong loan-to-deposit ratio and a low reliance on interbank and foreign currency funding. The average long-term funding ratio for the first quarter increased to 26,6% (Q4 2012 average: 26%) supported by the successful issuance of R2,0bn in commercial mortgage backed securitisation notes in March 2013.

REST OF AFRICA INVESTMENT

Expansion into the rest of Africa is one of Nedbank Group’s four key strategic focus areas. Our Rest of Africa strategy is to provide a ‘One’ bank client experience through our strategic alliance with Ecobank in Central and West Africa, and building Nedbank’s presence through our own operations in Southern and East Africa.

In line with this strategy and implementation plan, we are pleased to announce that Nedbank Group has entered into an agreement to acquire an initial 36,4% shareholding in Banco Unico of Mozambique for $24,4m with a decisive role in its strategic and operational management, and to increase our stake in Banco Unico to a majority shareholding over time. The effective date of the initial acquisition is aligned to the settlement date of the purchase consideration after the fulfilment of various conditions precedent.

Banco Unico, a full service bank, was established in 2011 by the prominent Portuguese Investment company, Group Americo Amorim Holdings and has a net asset value of $34,5m as at 31 December 2012. The bank has one of the most

WorldReginfo - 776212d8-6817-48b1-97e0-d6befbbd76d7 experienced management teams in Mozambique, managing 14 branches and 259 employees spread across Maputo, Matola, Beira, Tete and Nampula. This acquisition positions Nedbank well to service the increasing number of SA businesses operating in Mozambique. The transaction is subject to regulatory approvals in both SA and Mozambique.

PROSPECTS

The group’s earnings guidance for 2013 communicated at the time of the 2012 results announcement remains unchanged under the current economic environment.

Shareholders are reminded that these prospects and the figures mentioned in the “operational performance” section have not been reviewed or reported on by the group’s auditors.

FORWARD-LOOKING STATEMENT

This announcement contains certain forward-looking statements with respect to the financial condition and results of operations of Nedbank Group and its group companies that, by their nature, involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. Factors that could cause actual results to differ materially from those in the forward- looking statements include, but are not limited to, global, national and regional economic conditions; levels of securities markets; levels of interest rates; credit or other risks of lending and investment activities; as well as competitive and regulatory factors. By consequence, all forward-looking statements have not been reviewed or reported on by the group’s auditors.

Sandton 3 May 2013

Sponsors to Nedbank Group in South Africa: Merrill Lynch South Africa (Pty) Limited Nedbank Capital a division of Nedbank Limited

WorldReginfo - 776212d8-6817-48b1-97e0-d6befbbd76d7

Sponsor to Nedbank Group in Namibia: Old Mutual Investment Services (Namibia) (Pty) Limited

WorldReginfo - 776212d8-6817-48b1-97e0-d6befbbd76d7